PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Novation
Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty.
Contracts
Contract changes and transfer
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Novation mean?
Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty.
How do you separate the nearest exam answer?
Novation includes consent and release. Assignment transfers rights but does not automatically discharge the assignor's obligations.
What changes or stays the same in Georgia?
The national contract rule applies in Georgia. Look for clear facts showing the obligee agreed to the substitution and released the original obligor.
A seller agrees that a replacement buyer will assume the purchase duties and expressly releases the original buyer from the contract.
Performance by a substitute is not enough if the original party remains liable.
Memory cue: Performance by a substitute is not enough if the original party remains liable.PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Which statement correctly explains Novation?
- A
An assignment transfers a party's contractual rights to another person, the assignee, without necessarily releasing the original party from contractual obligations.
- B
An amendment is a later agreement that changes, deletes, or replaces terms in an existing contract.
- C
Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty.
- D
Rescission is the cancellation or unwinding of a contract, with the goal of restoring the parties as closely as possible to their precontract positions.
Novation is correct. Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty. Novation includes consent and release. Assignment transfers rights but does not automatically discharge the assignor's obligations. The national contract rule applies in Georgia. Look for clear facts showing the obligee agreed to the substitution and released the original obligor.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Contracts complete lesson
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